Equity REIT

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Definition of 'Equity REIT'

An equity REIT, or real estate investment trust, is a type of investment that allows individuals to invest in real estate without owning physical property. Equity REITs own and operate income-generating real estate, such as office buildings, apartment complexes, shopping centers, hotels, and other properties.

Equity REITs generate revenue primarily through rental income from their real estate properties, which is then distributed to shareholders in the form of dividends. Equity REITs also have the potential for capital appreciation, or an increase in the value of the underlying real estate assets.

Equity REITs are often considered a stable and predictable investment, as they are based on tangible assets and tend to generate regular income through rent and other sources. Equity REITs may be appropriate for investors who are seeking regular income and potentially long-term capital appreciation, and who are willing to accept some level of risk.

It's important to note that like all investments, equity REITs come with risks, such as changes in the real estate market, interest rate fluctuations, and other factors that may affect property values and rental income. Investors should carefully research the options available and consult with a financial advisor to determine if this type of investment is appropriate for their goals and risk tolerance.

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